Ben-Davies & Moore v. Blibaum & Assoc.
177 A.3d 681
Md.2018Background
- Two tenants (Ben‑Davies and Moore) defaulted on residential leases; landlords obtained District Court money judgments that included unpaid rent plus other charges (late fees, utilities, repairs), without itemizing what portion was rent.
- A debt‑collection law firm (Blibaum & Associates) collected for the landlords and applied a 10% post‑judgment interest rate in collection notices and garnishment reports.
- Tenants sued the collector in federal court asserting statutory claims (including FDCPA), arguing the correct post‑judgment interest rate was 6% under Md. Code, Cts. & Jud. Proc. § 11‑107(b).
- The federal district courts dismissed for lack of standing; the Fourth Circuit reinstated the cases and the parties jointly certified to the Maryland Court of Appeals the legal question whether § 11‑107(a) (10%) or § 11‑107(b) (6%) governs where a judgment includes rent plus other lease‑related expenses and does not specify amounts.
- The Maryland Court of Appeals held that § 11‑107(b) (6%) applies to a money judgment "for rent of residential premises" even if the judgment also includes other lease‑related expenses and the judgment is not apportioned.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicable post‑judgment interest rate when a landlord obtains a money judgment in a breach‑of‑contract action on a residential lease that includes unpaid rent plus other expenses and is not itemized | § 11‑107(b) controls; the judgment is a "money judgment for rent of residential premises," so 6% applies to the whole judgment | § 11‑107(b) should not apply to breach‑of‑contract judgments or to non‑rent components; "rent" means periodic occupancy payments and the 6% exception was meant for possession/summary ejectment contexts; 10% under § 11‑107(a) governs | Court held § 11‑107(b) applies: 6% rate governs the entire money judgment when it arises from rent of residential premises, even if the judgment includes other lease‑related charges and is not apportioned. |
Key Cases Cited
- Med. Mut. Liab. Ins. Soc’y of Md. v. Davis, 389 Md. 95 (2005) (defines purpose and accrual of post‑judgment interest)
- Mayor & City Council of Balt. v. Kelso Corp., 294 Md. 267 (1982) (discusses rationale for raising default post‑judgment rate to compensate plaintiffs and deter delay)
- Md. State Highway Admin. v. Kim, 353 Md. 313 (1999) (historical context for interest on judgments)
- Bottini v. Dep’t of Fin., 450 Md. 177 (2016) (statutory‑construction principles)
- Lockett v. Blue Ocean Bristol, LLC, 446 Md. 397 (2016) (interpretation of "rent" in landlord‑tenant statutes; narrow construction of exemptions to remedial statutes)
- Arthur Treacher’s Fish & Chips of Fairfax, Inc. v. Chillum Terrace Ltd. P’ship, 272 Md. 720 (1974) (measure of damages for commercial lease breach where possession never occurred)
- Circuit City Stores, Inc. v. Rockville Pike Joint Venture Ltd. P’ship, 376 Md. 331 (2003) (contract damages and reletting/mitigation issues in commercial lease context)
- Lamone v. Schlakman, 451 Md. 468 (2017) (use of legislative history as confirmatory when statutory language is clear)
